Homezz Wood Manufacturing Business Plan: Purfleet, England

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A REALISTIC BUSINESS PLAN
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Executive summary
In the current decade of cross-cultural management and globalization, the innovation in
the technology and the business processes have changed to a large extent. This has
shed its implications on the startup business plans as well. In contrast to this, the report
sheds highlights the marketing strategies and the management processes that will be
needed by a startup company to start its business in an urbanized city. In this regard,
the special highlight has been drawn towards the challenges that the company may face
in the long-term business expansion in the area. Moreover, the report also suggests the
financial development plans and business development issues that can be brought in
Homezz due to its management process and expansion policies.
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Contents
Introduction...................................................................................................................... 5
Business details............................................................................................................... 6
Description of the business...........................................................................................6
Mission..........................................................................................................................7
Vision............................................................................................................................ 7
Aims..............................................................................................................................7
Objectives.....................................................................................................................8
Industry and market analysis...........................................................................................8
Industry size, growth, structure.....................................................................................8
Industry and market trends...........................................................................................9
Market segments.......................................................................................................... 9
Reasons for target market selection...........................................................................10
Buyer behaviour..........................................................................................................10
Competitor analysis (strengths and weaknesses).......................................................11
Market share for an existing business........................................................................11
Customers and value proposition...................................................................................12
Target market segment...............................................................................................12
Reasons for the customers for not buying from other sources...................................12
The benefits Customers are looking for......................................................................13
Marketing strategy..........................................................................................................14
Competitive reaction...................................................................................................15
Operations plan..............................................................................................................15
Key operating activities...............................................................................................15
Business model...........................................................................................................16
Partnerships................................................................................................................16
Business controls........................................................................................................17
IP issues..................................................................................................................... 18
Scalability....................................................................................................................18
The management team and company structure.............................................................19
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Key people, their functions and background...............................................................19
Business organization or structure..............................................................................20
Directors, advisors and another key partner...............................................................20
Skills gaps and plans for filling them...........................................................................21
Resources...................................................................................................................... 22
Premises and facilities................................................................................................22
Machinery and equipment...........................................................................................22
Staff............................................................................................................................ 22
Financing........................................................................................................................24
Founders’ contribution................................................................................................ 24
Loan and/or equity finance..........................................................................................24
Gearing/leverage........................................................................................................ 24
Time scale and exit routes for equity investors...........................................................24
Assumptions............................................................................................................... 25
Risk and strategic options..............................................................................................26
Types.......................................................................................................................... 26
Identified risks.............................................................................................................26
Risk monitoring and mitigation strategies...................................................................26
Critical success factors...............................................................................................26
Strategic options......................................................................................................... 26
Key milestones...............................................................................................................28
Conclusion..................................................................................................................... 29
References.....................................................................................................................30
Appendix........................................................................................................................ 34
Sources of Funding.....................................................................................................34
Sales Forecast............................................................................................................34
Profit and Loss Projection...........................................................................................36
Financial projections...................................................................................................... 38
Income projections......................................................................................................38
Cash flow projections..................................................................................................39
Balance sheet projections...........................................................................................41
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Introduction
In this era of cross-cultural business strategies, the management policies and the
business structures have changed to a large extent. The companies with different
marketing policies are opting for unique marketing processes to provide high-quality
services to their consumers and make a prominent place in the market. This particular
report focuses on a business startup plan of a wood furniture manufacturing company,
Homezz that will provide its services in the local markets of Purfleet in England.
Homezz will provide basic designing manufactured products to its customers and
determine the needs of the customers. In contrast to this, this report also suggests
different areas and ways in which the company can determine the internal and external
strengths and weaknesses in their business process and various ways that will help
Homezz to mitigate and eradicate the problems. Homezz shall be opting London as its
major market, as most of the houses prefer wooden furniture and manufactured goods
in their daily life process. In contrast to this, the later section the report sheds highlights
towards the working culture and business process of the leading wood manufacturing
and service providing company in particular area that will help the company to
determine the business process and strategies opted by the firm to maintain stability in
the international and domestic market.
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Business details
Description of the business
The business process shall be placed in the Purfleet City in England due to its vast
availability of natural resources and the city being the large area for export and import of
major companies such as Unilever and Bertolli. Moreover, the site selection is also very
apt and appropriate as the city has major transportation units such as Basildon and
Grays that will also help Homezz to make major imports and exports in the business
process (Anderson, 2015).
The business process shall aim towards providing wooden designing services to the
local people and share its market in the international market as well. The business
process shall also be highlighted as most of the areas in the city have scenic beauty
and the planning for resorts and antique hotels in the area shall help the business to
grow in the market place. In contrast to this, Homezz shall be making a storehouse in
the city to reduce the transportation charges and make optimum use of the existing
resources and skills in the business processes (Ashman and Conway, 2017).
Logo of the Business
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Figure 1: Business Logo of Homezz
(Source: As created by author)
Mission
Serving the customers by delivering compelling products, attractive pricing and
adequate backup and support services to the consumers in the international and local
market.
Vision
To be the best barrel wooden housing service provider in the city, design and furnish
the little houses in the town as per the needs and demands of the customers.
Aims
The primary aim of the organisation is to provide high-quality services to the people of
the nation, along with generating a high level of profits and long-term sustainability.
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Moreover, hiring experienced and talented skills in the business process shall also be
one of the major aims of Homezz in the international market.
Objectives
 To carry on the business as the major manufacturer and service provider in the
country
 Increasing the variety and variability of the products alongside maintaining the
quality of the products (Bullough et al. 2015)
 Making collaboration with the local service provider in the area to make the
services more quality proof and maintain the pricing policies in the country. The
local service provider with whom the company can collaborate is John Lewis, this
furniture shop is a mere startup, and the collaboration with the shop will result
in , and the collaboration can take place by co-branding of the products. Co-
branding is a unique strategy that helps to increase the profit level.
 Determining the needs of the customers and maintain the consistency in the
target market
Industry and market analysis
Industry size, growth, structure
Size Growth Structure
 The midsized
industry with around
90-100 employees
and internal
stakeholders
 The industry shall
shed its market in
the interior places of
the city and the
major exporting site
in England (Carraher
et al. 2016)
The strategies for the
growth of Homes shall be
that the company shall
involve experts suggestion
and upgraded technical
equipment and technical
support in the business
process. The company can
do the implementation by
assigning a physical body
to look after these activities.
At first, Homezz will be a
corporate partnership type
of industry that will flourish
its market in the long run
pace
Larger market segment in
the business process shall
be explored by the imports
and exports process. This
market segmentation can
be done by considering
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 At first, Homezz will
be a corporate
partnership type of
industry that will
flourish its market in
the long run pace.
The company will opt
for the limited
partnership form
(LP), and this kind of
partnership will be
adopted because
this kind of corporate
partnership type will
attract investors
because limited
liability is present in
the purview of the
limited partners also
the partnership form
gives an opportunity
to share both the
profits and the
losses.
The implementation of this
body will help to reduce the
cost charge and increase
the demand in the target
market
Moreover, this will help
Homezz to penetrate a new
target market
demographic segmentation
and behavioral
segmentation.
(Denolf et al. 2016)
Table1: Industry size, growth, structure
(Source: Denolf et al. 2016)
The size growth and structure of Homezz shall follow the legislation of the corporation
industry in the country. Moreover, the involvement of the local contributors shall help the
company to determine the needs and demands of the customers and maintain
consistency in the international market. This involvement can be conducted by giving
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survey forms which involve the feedbacks of the customers, and the main local
contributor can be the customers themselves. Customers contribution towards the
business helps to address the customer requirements.
Industry and market trends
Homezz shall be shedding its market in the interior places and the market segment of
Purfleet, and it shall follow the legislation and legal structures of the corporation
companies in the business market.
In contrast to this, to determine the market trends, Homezz will determine the needs of
the customers by making rates and review and interests of the customer shall be
attracted towards the company by valuable offers and promotional events in the market
place. To shed its business process in the city, the company shall determine the
business process of the competitors in the business process (Eriksson and Kovalainen,
2015).
Market segments
Homezz shall be manufacturing the goods by determining the needs of the
customers.Further, the management shall focus on maintaining the quality of services in
the business process to ensure fulfillment of target market needs, and thereby make the
best use of the existing skills and talents in the business process.
In contrast to Homezz, the company shall be providing the interior home décor services
to the customers such as wall modification, centre tables, wall hangings and
showpieces and also shed its market in Purfleet and the nearby places of the city.This
can be the unique selling point of the company as the competitors in the target area
provides services of fancy fibre products (Ezzabadi et al. 2015). As the company has
increased its retailer distribution and has involved better promotional events, customer
satisfaction can easily be determined by the company.
Reasons for target market selection
The major reason to select Purfleet as the target market is that, most of the houses use
wooden furniture to decorate their interior spaces. Moreover, the company shall be
benefitted as the city is being used to a large extent as the resort and gathering spots to
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enjoy holidays by the people in the local market. This will help the company to get a
large number of contracts from these resort management and business holders.
Availability of natural resources in the city and the city being the large area for export
and import of major companies such as Unilever and Bertolli shall help the business
process to grow. Moreover, the site selection is also very apt and appropriate as the city
has major transportation units such as Basildon and Grays that will also help the
company to make major imports and exports in the business process (Furnham and
Gunter, 2015). The availability of natural resources will help to get the wood easily;
wood is the main ingredient of the company's output because the company is aiming at
selling wooden furniture and the location will help the shop to use the resources which
are easily available in the geographic location. Now the better transportation system will
help the shop to conduct the export and import of the products easily. Transport system
will help to grow the business and increase the profit margin of the shop.
Buyer Behaviour
To determine the buyer behavior, the company at first needs to recognize the problem
and build awareness objectives against in the business process. In contrast to this, the
company shall search for or the research and developmental areas that can be
implemented in the business process. Next, to this step, the company can evaluate the
availability of alternatives in their business process. This will help the organization to
develop a better understanding of the customer needs. To maintain its consistency,the
company shall provide its customers by post-purchase product evaluation and
determine the rates and reviews of the customers in the business process,
In contrast to the people of Purfleet, people prefer small and large wooden households
and furniture in their interior spaces instead of fancy fiber products. Moreover, the
centre dining table and cupboards are of high demands in this particular area (Górski et
al. 2017).
Competitor analysis (strengths and weaknesses)
Homezz wood shall be a tough competitor for the business process, as the company
shares a large market and customer background in the city of Purfleet. In contrast to
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this, the strength and weaknesses of the company are discussed in the presentation
(Greenhalgh et al. 2017).
Strength Weakness
 High brand image
 Customer support
 Quality maintenance
 Unique designing and delivering
process
 Stagnant target market
 Saturated business process
 Less involvement of technology in
the business process and of
Table 2: Competitor Analysis
(Source: Hair Jr et al. 2015)
Market share for an existing business
Holmes wood shall be a tough competitor for the business process, as the company
shares a large market and customer background in the city of Purfleet.
The company shares the largest share in the market and penetrating new market has
also been the major target of the company in their recent business strategy. Homezz
Wood share around 68 % of the entire target market of Purfleet (Hair Jr et al. 2015).
This 68% share of Homezz Wood is given by considering the report of the target market
of Purfleet (Store.mintel.com. , 2019)
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